As an alternative to traditional switched circuit networks, telecommunications service providers have discovered that telephone calls may be routed over IP networks. Due to the fact that the Internet is not presently subject to the same international regulations as are traditional telephone networks, routing telephone calls over the Internet tends to be less expensive. Additionally, an IP routed telephone call requires much less bandwidth, and thus less cost, than a telephone call placed over a traditional telephone network. Further, IP technology advances and is entered into the marketplace at a much faster rate than traditional telecom technology. Thus, in order to be competitive, telecommunications service providers have begun to use IP routing as a way to offer customers access to the latest technological improvements.
Presently, however, there is no centralized system for routing telephone calls over an IP network. Each operator of a gateway is responsible for determining the routes for its own outgoing calls. Typically, gateway operators rely on traditional IP routing algorithms, which are designed to handle routing of computer generated data packets. Traditional IP routing algorithms attempt to strike a balance between the concerns of minimum delay and maximum reliability. Thus, using traditional IP routing algorithms, a telephone call will be routed to any terminating gateway that happens to satisfy a set of predetermined shortest path and acceptable data loss parameters.
The routing of telephone calls, however, involves a significant concern that is not shared by traditional IP routing algorithms. This additional concern is the monetary cost of routing a call to a particular terminating gateway. As in traditional switched circuit networks, Internet telephony gateways impose fees for the service of terminating a call. Traditional IP routing algorithms are not able to detect and compare the varying price schedules that may be imposed by various Internet telephony gateways. Thus, originating gateways are not able to discriminate between terminating gateways based on monetary costs.
One way a gateway operator can establish the costs for IP telephony services is by negotiating directly with other gateway operators the fees for terminating each other's calls. These gateway operators could identify each other and establish a bilateral agreement or a multilateral agreement. This approach closely resembles that of the international circuit switched telephony network, where providers in each country have established bilateral and multilateral agreements with each other. A significant hurdle for this routing implementation, however, is the large number of business relationships that must be negotiated and maintained. For example, should 1000 local operators decide to interconnect via bilateral agreements, 999000 separate agreements would be necessary. Interconnection through a centralized system, however, would require only 1000 separate business agreements, each with a separate operator.
Another disadvantage with the bilateral agreement model is that the gateway operators are not able to react quickly and intelligently to changing market forces because the bilateral agreements are generally long term contracts. For example, when there is a sudden increase in demand for terminating calls to a particular area the gateway operator in that area is unable to increase his terminating charges and take advantage of the demand. Additionally, the bilateral agreement model or the multilateral agreement model are too cumbersome for the gateway operators to set call pricing based on selected called number ranges (any given subset of all possible telephone numbers). This is especially true if the total number of telephone numbers comprising a called number range is too small. For example, it may be too cumbersome for the gateway operators to negotiate a specific call pricing plan for a specific customer with less than one hundred numbers within their called number range.
Thus, there remains a need in the art for a method and system by which an originating gateway operator may set a price that it is willing to pay to a terminating gateway operator for the service of terminating a call. There is also a need for a method and system by which a terminating gateway operator may set a price that it is willing to accept in exchange for terminating a call. There is a further need for a method and system configured for use by an IP routing engine for selecting routing options for a call based on matching the pricing criteria set by the originating and the terminating gateway operators.
There also remains a need in the art for a method and system by which a gateway operator may set or change call pricing criteria on-demand. There also remains a need in the art for a method and system by which a gateway operator may set or change call pricing criteria associated with any subset of all possible telephone numbers.